On January 1, 2017, Shay issues $700,000 of 10%, 15-year bonds at a price of 97. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount.

Please explain the journal entry and why